Oil exporters agree to extend output curbs

Reuters

The world’s leading oil-exporting countries have decided to expand the production of curbs, intended to increase the price of oil, to nine months.

The Organization of the Petroleum Exporting Countries (Opec) and non-members, led by Russia, agreed to the release of the boundaries will continue until the end of 2018.

The limits are first agreed a year ago, and has helped to push up the price of crude oil of about 30%.

The price of oil fell slightly, after the last agreement, which was expected.

Brent is down 0.3% to $62.35 a barrel.

The oil-exporting countries have suffered in the face of declining oil prices caused by excess supply globally.

The new deal means of 1.8 million barrels per day will continue to be cut from the market, in an attempt to reduce the excess supply and push up prices.

The 14 members of Opec, of which the largest member Saudi Arabia has often limited the output to increase prices.

However, last December, they were joined by 10 non-members others, including the largest exporter outside the group, Russia.

This agreement was already extended once until the end of March.

A factor, the global excess supply of oil is growing shale oil production in the UNITED states.

Russia has already expressed concerns that, by continuing the exit kerbs could lead to increased production of shale oil.